German commercial Real Estate funds in Sweden

Contents

Acknowledgements

1 Introduction
1.1 Background
1.2 Purpose
1.3 Method
1.4 Limitations

2 Theory about international investments
2.1 Theory about direct investments
2.2 Concept of ownership
2.3 Diversification
2.4 Investment motives and problems
2.5 Real Estate cycles
2.6 Bubble theory

3 Real Estate Funds
3.1 General definitions
3.1.1 Forms of Funds
3.1.2 Open-ended versus closed-ended funds
3.2 Structure of German real estate funds
3.2.1 Open-ended funds
3.2.2 Closed-ended funds
3.3 Laws and regulations
3.3.1 Taxation rules
3.3.2 Double tax agreement Germany-Sweden
3.3.3 Mortgage rules
3.3.4 Double layer structure
3.4 Historical development in Germany
3.5 Historical development in Sweden

4 Germany
4.1 General economic situation
4.2 Real estate situation

5 Sweden
5.1 General economic situation
5.2 Real estate situation

6 Foreign Investments in Sweden
6.1 International investments
6.2 Motives and investments of international investors

7 Pattern of German funds
7.1 Development of German investments in the years 2000-2007
7.2 Types of German funds
7.3 Type of properties and locations

8 Investment motives
8.1 Key factors for investment decisions
8.2 German investment motives
8.3 Investment strategy
8.4 Risk
8.5 Recent market trends

9 Hypothesis testing and Theoretical evaluation
9.1 Hypothesis testing
9.2 Theory of property ownership
9.3 Investment motives
9.4 Bubble theory

10 Conclusions

References

Interviewed funds

Appendix 1

Appendix 2

Appendix 3

Appendix 4

Appendix 5

Appendix 6

Appendix 7

Abstract

This Master Thesis has the aim to identify the investment patterns of German commercial real estate funds in Sweden. Questions of “when”, “how” and “why” they entered the Swedish market are answered. Also the local distribution of these investments is taken into consideration. The motives why they had and still have chosen the Swedish market are explained and compared with several former research papers about foreign investment motives. 19 interviews have been made with German real estate funds as well as Swedish advisor companies in order to answer these questions.

The interviews with German funds have shown that they face several problems due to the German Investment Act. The main difficulties are the prohibition of the double layer structure, hierarchy problems and strict regulations concerning investment rules. Thus German funds were limited in their ability to make decisions. But the German Investment Act will change and liberalize the German funds. Thus real estate funds will have the possibility to compete with other investors for projects, which they could not do before.

German funds entered the market, because it promised to be a growing and stable market. At the time when German funds entered Sweden, the real estate situation and economic position was better compared with the German business and real estate cycles. The funds were mainly driven by diversification and the high liquidity in Germany. Official statistics showed that diversified international portfolios performed better than national ones.

Another point in the investigation is the development of the interest rate in Sweden. Forecasts predict an increasing interest rate and so highly leveraged investors are likely to leave the market. German funds instead can be 100% equity financed and so will win more market share in the next years.

Acknowledgements

This paper benefited from several business contacts. Therefore I want to thank Lars Blanke from Schroders. He supported my idea for the thesis right from the beginning and provided me with almost all contacts to German real estate funds. Furthermore I appreciated the help of Jörg Laue from Oppenheim, who invited me to the Arena Business Conference, where I met advisor companies I interviewed later. Through the interviews with German funds and Swedish advisor companies it was possible to get an inside view of the international real estate business. Therefore it is important to me to thank all the interviewed companies, which took their time to answer my questions.

Beside the interviews I would like to thank my supervisor Hans Lind at the Royal Institute of Technology in Stockholm for his support and input. Several conversations and discussions inspired my work.

1 Introduction

1.1 Background

Sweden, as part of the Nordic region, showed a strong economic development over the past few years. An increasing Gross Domestic Product (GDP), good employment rates and low remaining interest rates lead to a good position in the European market competition^[1] (see chapter four). Thus it is not astonishing that also foreign real estate investors had a closer look on the Swedish market. The stable environment, the close connection and solidarity of the Nordic countries make them further interesting for foreign investors. As a result international investors represented 43% of the total investment volume in Sweden in year 2006. Especially English, Danish and Norwegian companies showed up in the Swedish market^[2].

But what happened in other European countries, for instance Germany? Germany is one of the strongest countries in Europe in terms of exports and economic growth (see chapter four). The national economy is improving and also the transaction volume increased significantly in 2006 to 49,5 billion EUR. Thereby real estate companies and real estate funds played an important role with 48% of the invested capital^[3].

These real estate funds invested also in other countries to offer a good diversified portfolio to their clients. But since when and why did they invest in Sweden? It is important to understand the historical development of German funds in Sweden to follow their investment patterns and motives, especially to answer the questions how German funds affected and influenced the Swedish market. ”History teaches itself” and helps to understand faults as well as opportunities to avoid or take them in the future. Furthermore is it interesting to understand which regulations German funds have to follow and thus which problems they face.

1.2 Purpose

The purpose of this Thesis is to find out when and how German Investment funds entered the Swedish real estate market. Further the question “Why did they enter” needs to be answered, to identify the historical motives and to compare them with the current situation. Thus Swedish advisor companies can gain knowledge about the German motives and can adjust their real estate offers. The Swedish market participants can therefore learn from the German investment behaviour and draw conclusion to other investors and the general development of the Swedish real estate market.

German companies who act on the Swedish market need to follow the “German Investment Act” (Investmentgesetz, InvG). Thus it is interesting to see which rules they have to follow and if these rules affect the normal transaction procedure with Swedish real estate advisers and sellers.

With this understanding of German investment funds, their motives and the historical development it is possible to adjust the current portfolios by looking for better properties or portfolio structures, as well as improving the judicial collaboration and the management strategy.

The thesis also has the aim to answer several hypotheses. The ideas for these statements developed during the literature research and the interviews with the fund managers.

Hypothesis 1:

Diversification was the main motive for German funds to enter Sweden!

Based on the survey of Worzala (1994), it is possible to make an educated guess that German funds were mainly driven by diversification.

Hypothesis 2:

One reason for German funds to enter the Swedish market was the high liquidity in Germany!

While preparing the Thesis, different experts stated that German funds entered the market with such a pressure (caused by liquidity), which was not necessary at that time. The hypothesis is therefore that German real estate funds needed to enter the Swedish or a new market due to the high liquidity in Germany.

Hypothesis 3:

German investment behaviour depends on the Swedish real estate cycle!

The investment activity of German funds was very high during 2003 and 2004. The Swedish construction sector produced several newly built office properties from 2001 to 2003. After the completion the supply for new premises went down and also German funds decreased their activities in Sweden.

1.3 Method

Generally the information for this paper will be generated by using scientific literature and theories that are available in the KTH library. Further the historical data are mostly based on magazines, newspaper articles and reports of the companies. Through this it will be possible to gain the objective knowledge that is available in public.

Several theories will be included in this paper. They have the purpose to explain the current research position and give a background of the current information base. These theories will also help to draw conclusions on the German investment behaviour as well as providing better solutions for the relationship of domestic owners and foreign investors.

To have a closer look at this business it is necessary to interview experts like acquisition managers and fund managers in the branch. These experts are employees of German real estate funds in Germany. They were or are currently involved in funds with Swedish focus. The contacts to those experts are offered from Lars Blanke, country manager of the Nordic region of Schroder Property Kapitalanlagegesellschaft mbH.

In order to get an overall picture of German – Swedish business relationships interviews with Swedish adviser companies were made. Thus problems of German real estate funds can be monitored from an inside point of view and can provide advantages and disadvantages of German funds in an international perspective.

1.4 Limitations

The thesis is limited to those commercial real estate funds, which act in Sweden and further on those funds where contacts could be made. That is why it is obvious that just those points of views and knowledge can be included. Beyond that, subjective perceptions have an influence on the thesis as well they are always stressed in the text and do not dominate the gained knowledge.

2 Theory about international investments

2.1 Theory about direct investments

In a more and more globally acting world, trading and cross-border investments become more important. Private persons as well as companies see an advantage in investing in other parts of the world. The trade between countries is influenced by the independence on the product market, the capital markets and the labour markets^[4]. Thus investors can benefit from the different market cycles and conditions.

Foreign direct investments (FDI) are investments that show a long-term interest by a resident entity in one country in an enterprise in another country^[5]. According to OECD the direct investors are attracted by a long lasting relationship to the “direct investment enterprise” and an influence in the management of the enterprise. In order to classify such an investment the investing company must have at least 10% of the shares or the voting power. Axelsson and Victorin (1999) basically divide between three kinds of FDI’s: green-field investments, mergers and acquisition and expansion investments. According to Caves (2007), green-field investments will be undertaken more often than acquisitions, because the direct investor fights more against governmental restrictions than against jobs.

Compared to the trading theory of Stiglitz (2000) the reasons for the investing company become clearer. The product market in the new country has advantages, for example resources could easily be bought or a new technology is already available and can increase the quality and quantity of goods. Furthermore, the direct investment enterprise can provide benefits from the capital markets. For example tax advantages or liquidity issues. The last point is the labour market that can attract the direct investor. The labour supply is high and perhaps on a qualified level. Additionally, the salaries play an important role. If salaries are lower than in the “home country” extra profits can be generated. On the other hand Axelsson and Victorin (1999) stated in their report from 1999 that FDI leads to an inflow of capital into a country and thus to an increase of demand of products and labour. The authors also emphasize that through the impact in the management structure, knowhow and technology can be implemented in the market. Thus domestic companies can learn from the imported knowledge and improve their own production. In addition the domestic competition will increase and so a new equilibrium will develop by improved quality and higher quantity.

Although the motives for FDI become clearer, there is still the question why should companies decide to undertake FDIs, if they could also trade with the favourite country. Caves (2007) considers the answer in the preferential trading agreement (PTA). The region of the European Union for example follows such an agreement. Countries within the trading area have an easy access to money, resources and human capital. Countries outside the borders have certain restrictions. Companies will certainly consider these restrictions when they trade in products. Another factor is the transactions costs that a company has to pay with the purpose of trading their goods with other countries. FDI will be undertaken, if the overall trading costs on the new market are higher than the administration costs of a direct investment.^[6]

After the decision of foreign investments the question must be answered how such a deal should be realized. In general investors have two options^[7]:

- Direct investment as
- Wholly owned equity interest
- Joint venture structure with local partner
- Direct development
- Funding
- Indirect investment as
- Public traded property company
- Trusts

According to the article of McAllister (2000) indirect investments are mostly chosen. In such an investment the management is controlled by a contract and new features can easily be implemented. Direct investments instead require more information and effort for the property management. Thus more resources must be provided by the foreign company. These information and resources cause another difficulty: The international investor faces a lack of local knowledge, which must be adjusted through a paid local partner. Thus the international company is dependent on its advisor. McAllister (2000) considers direct investments just as an opportunity for big international players, which can afford a research department and higher costs for management and diversification. Further he recommends direct investments just for international companies, which are confident enough to discover underpriced assets and manage their properties like local owners.

2.2 Concept of ownership

The concept of ownership is described as a combination of residual control rights and residual returns. The residual control gives the owner of the asset the right to make any decision, which is not limited by a law. However it is not possible to create a complete contract, which includes all possible rights for the future. Thus incomplete contracts are the consequence. Residual returns are the counterpart of the residual control and are defined as the returns that are left after all costs have been paid. The arrangement of residual control and residual returns shapes the concept of ownership. If both rights are combined the owner holds the financial responsibilities and the influence of its alternatives in one hand. Thus incentives for a “good ownership” are created. The possessor has the aim to maintain or improve its asset in order to receive the highest possible return. This way the most efficient decision can be generated.^[8]

With the background of the Coase Theorem the function of ownership reaches another level. The theory states that an efficient decision can be reached through bargaining parties, without influencing wealth preferences^[9].

For example, property rights must be tradable in order to have an efficient result. If they are not tradable, which means without negotiation, the likelihood of an efficient property owner is low. Through bargaining the best owner is chosen, because he or she has an interest in a high return asset, thus his willingness to pay for the assets is the highest. The same principle applies to the security of ownership rights. If those rights are not secured by the government, property owners have fewer incentives to maintain or improve their asset, because they could lose it one day.

Moreover it is interesting to see, how the distribution of ownership rights can affect the value of a product. If ownership rights are shared by many persons also the residual returns are usually equally shared. But the overall welfare is spread into many parts, according to Milgrom and Roberts (1992). The authors see a tendency that the owners are losing the overall interest in an increasing value of their asset and monitor an affinity of shared maintenance costs.

Another point in the theory is the correlation of specific assets. Properties are usually designed for a certain use and have thereby a degree of specificity. In case two assets are highly specific to a use, the highest value can be generated if both are also used together. The two assets are cospecialized, according to Milgrom and Roberts (1992). But a hold-up problem can develop, if the asset owners start to bargain and will not agree on a solution. In order to avoid such a situation the two assets must be hold by the same person or organisation. Milgrom and Roberts (1992) also underline an uncertainty and complexity problem, which becomes visible in an unclear situation of ownership. Ownership contracts are incomplete contracts, but can still include several issues that the parties need to formulate. If the described assets cannot be bought by one person a leasing contract could be a solution. A long-term contract would simplify the relationship between the owners and through the possibility to repeat the lease contract a “frequency and duration” advantage can be implemented.

2.3 Diversification

An important factor for investment decisions is risk measurements. Principally investors want a compensation of higher risk, thus they require a higher return. However these two figures influence each other. Treasury bills are the most secure investment opportunity and have also the lowest return. If capital is invested just in one asset, the investor carries all the risk that can affect this asset. However with an investment in several different assets the risk is spread, because the mixture of the diverse assets generates a higher security. For example if assets in different asset classes are bought, the probability that all type of asset classes are affected by a downturn is very low. This strategy is called diversification. The key of the diversification is that prices for goods are not exactly depending on each other and thus not moving together^[10].

Two kinds of risk can be classified (see drawing 2.1):

- Unique risk, likely to be eliminated by diversification. The unique risk is also called company risk, meaning a risk that belongs in particular to a company.
- Market risk, unlikely to be eliminated by diversification. The market risk comes from the macroeconomic pattern of the market and cannot be eliminated.

illustration not visible in this excerpt

2.4 Investment motives and problems

Several articles were published in the last decades to analyse investments of companies. The portfolio theory of Markowitz explains why investment decisions are based on the expectations of risk and return. Companies invest with the purpose to maximize their wealth level and thus diversify their portfolio. But such a portfolio strategy must be based on continuous research, according to Lizieri in his article from 1994. He considers the risk reduction together with diversification as one of the main forces for companies to invest abroad. However the author discovered in his article also the main difficulties of international diversification:

- Less familiarity with the foreign trading practice can for example cause problems
- Regulations
- Market efficiency
- Cost structures

In order to construct a good diversified portfolio, he suggests having a variety of different locations, tenants and property types. Nevertheless he sees the biggest problem within this variety. Locations, which differ from the central cities with the prime markets are difficult to find in the right size, type and price of properties. His conclusion is that just large global players are able to diversify their portfolio more; beside the top locations.

Worzala (1994) considers diversification also as a main motive in her survey. Further yields, risk spread and the lack of opportunities in the domestic countries are the driving forces for international investments. Kyrkilis (2003) however determined in his report of macroeconomic determinants of outward foreign direct investments that investment decisions are also driven by national factors. National characteristics shape the amount of FDIs. He emphasizes five factors:

- Income, which is generated on a macroeconomic level (GDP)
- Exchange rate
- Technology
- Human capital in form of professionalism
- Openness of the economy

Among the motives of investments, experts like Worzala (1994) also accentuate the common problems that international companies have in other markets. Information is taken from the report of overseas investments from 1994:

- Ability to identify acquisitions in a foreign market
- Additional uncertainty due to currency fluctuations
- Management and operation once the investment is made
- Taxation differences
- Lack of local expertise
- Potential for misunderstanding due to cultural or language difficulties

Worzala (1994) states in the report that the currency fluctuations are named, but a lack of interest could be seen at the management side, which is explained by the trust in other experts, which will handle such a fluctuation with better knowledge.

2.5 Real Estate cycles

Real estate cycles describe like business cycles periodic fluctuations in the market^[11]. While business cycles focus on general rate of economic activity, real estate cycles focus on demand and supply as well as the price development in the property sector. The real estate cycle consist of four stages (see also figure 2.2)^[12]:

- Expansion: The demand for real estate space is increasing and thus vacancy is decreasing. Due to less space prices increase. More construction and development projects start.
- Slowdown, peak and downturn: Prices increase and vacancy rates remain low. As soon as the peak of the cycle is reached absorption, construction and developments decrease again.
- Contraction: Absorption, construction and developments decrease more and more and also prices begin to fall.
- Slowed contraction: Bottoming out of the construction downturn. At the lowest point the real estate industry is recovering and faces a new upturn with a new expansion.

illustration not visible in this excerpt

As in figure 2.2 seen, the construction of properties starts late (phase two) and the construction is completed in the third and fourth phase of the cycle; actually then when the demand for new space decreases.

The lack of information is the reason why the business cycle and the real estate cycle are not identical or relatively instantaneously. After the general economy is recovering and prices as well as the income increases the need for new construction appears (see figure 2.3). Thus the real estate cycle can face in phase three to four an increasing vacancy and also an overbuilding period. Grenadier (1995) mentions that the real estate cycle suffers from two factors: Property owners do not adjust their current rent level in a period of high vacancy and there might be an occurrence of overbuilding in high vacancy times. The author sees the explanation for lags of constructions first in the construction starting period and secondly in the “nonrecourse lending”. It is reasonable for developers to start their planning in good times, but they seem to forget that the completion takes time and so they end up in the last phase of the cycle with a declining demand.

illustration not visible in this excerpt

Mueller (1999) described rental growth rates (RGR) in a physical cycle (demand and supply for real estate). The author illustrates the RGR in the four phases of the cycle. In period one rents increase but are still low. In period two the RGR rise toward the inflation level and reach the long term average occupancy level (LTAO) and finally arrive with the highest rate at the peak of the cycle. Phase three and four are dominated from declining RGR, which meet again the LTAO and fall under the inflation rate. Period four is characterized by oversupply, which is caused by new construction projects in the contraction period. Grenadier (1995) mentions therefore three factors. First the length of the construction, second the rising cost for planning adjustments and third the higher demand volatility for real estate.

2.6 Bubble theory

In order to explain extreme developments of market prices there are two theories.

The efficient market hypothesis

The efficient market hypothesis states that prices reflect all information that is available in that time period. Thus the value of properties is determined by the market knowledge. Prices will therefore increase or decrease, if new information is made public. For example the announcement of a lower interest rate will lead immediately to an increase in prices. People act on a rational basis and are influenced by available information. As soon as new information is at hand, people form their expectations.^[13]

Bubble Theory

The price formation is irrational and not based on fundamentals. Stiglitz (1990) said “if the reason that the price is high today is only because investors believe that the selling price will be high tomorrow- when “fundamental” factors do not seem to justify such a price – then a bubble exists.” Fundamental factors like expected net operating income (NOI) or rate of return do not influence anymore the property price. Three types of bubbles can be distinguished^[14]:

Type 1: Bigger fool theory

People are buying properties for a high price, because they expect a resale to a bigger fool for an even higher price than the purchasing price.

Type 2: Irrational expectations

People form irrational expectations about the future market and are certain about a development without additional information.

Type 3: Irrational institutions

Institutions, like companies have a wrong organization. Losses that are carried out are expected to be moved to others. Thus, direct consequences of wrong decisions are not recognized and have no impact on the decision making position.

3 Real Estate Funds

3.1 General definitions

Before starting to get into the topic some important definitions must be made.

An “investment fund” is an investment company, which ties the capital of the investors in an fund. The financiers receive therefore shares of the fund’s assets. The risk for each single investor is minimized, as many different securities are bought^[15].

3.1.1 Forms of Funds

Investment funds are structured in public and special investment funds as well as in open-ended and closed-ended funds.

According to Bundesverband Investment und Asset Management e.V. (BVI) public funds are investment funds wherein everybody is allowed to buy shares. The opposite is the special fund that only allows “unnatural persons” (companies) to buy shares. These companies are usually institutional investors like insurance or pension companies. Special funds are just allowed to have 30 investors, according to §2 German Investment Act (Investmentgesetz, InvG).

According to Encyclopedia Britannica the name “mutual” or “open-ended” fund is used for an investment company, which invests the money of its shareholders in diversified groups of securities.

The counterpart to an open-ended fund is a “closed-ended” fund or “investment trust” that pools the funds of its shareholders and invests them in a diversified portfolio of securities^[16]. The investment object, the investment volume and the investment time are already defined before the closed-ended fund opens. After the investment company has collected the necessary equity the fund closes for other investors.

Summarized there are three different kinds of funds: Open-ended, closed-ended and special funds. During the research some difficulties appeared to order these forms of investments. In the following table 3.1 the three forms are separated.

Table 3.1: General form of funds

illustration not visible in this excerpt

Source: Compiled by the author

The open-ended investment funds can invest in different kind of assets, for example:

- Stock fund, capital is invested in stocks
- Pension fund, contains fixed-interest securities, government and treasury bonds
- Mixed funds invest in stocks as well as in fixed-interest securities
- Money market funds cover short-interest securities and loans
- Hedge funds buy assets of different investment areas
- “Fund of funds” invest in other investment funds
- Open-ended real estate funds invests directly in properties

Assets for closed-ended investment funds are usually:

- Leasing funds use airplane, container or real estate leasing
- Private-Equity funds collect private equity form investors for companies
- Closed-ended real estate funds buy properties

It is likely that other open and closed-ended funds can be found, but for the following research it is not necessary to list and explain them.

3.1.2 Open-ended versus closed-ended funds

In chapter 3.1.1 it is obvious that the expressions open-ended and closed-ended funds could lead to a misunderstanding between general investment funds and real estate related funds. Therefore the expressions open and closed-ended funds are only related to the real estate topic in the following chapters.

Table 3.2: Differences between open-ended and closed-ended funds

illustration not visible in this excerpt

In table 3.2, the main differences between open-ended and closed-ended funds are listed:

illustration not visible in this excerpt

Source: Encyclopedia Britannica (2007) and compiled by the author

3.2 Structure of German real estate funds

3.2.1 Open-ended funds

The organisation of German open-ended real estate funds is formulated in the German Investment Act (Investmentgesetz, InvG). The real estate funds are described by law as a product of capital investment companies (KAG). These companies are responsible for the administration of their own capital, the separate estate (Sondervermögen) respectively the special separate estate (Spezialsondervermögen) for special funds. According to §30 InvG the separate estate respectively the special separate estate must be held separately from the normal capital of the capital investment company. So the investor’s capital is formed into separate estates, which can be stocks, money market instruments or in this case properties.

As a controlling instrument of the capital investment companies’ activities, there is a depository bank, which ensures the safekeeping of the separate estates and the emission and restoration of the shares. In charge of the account and the monetary transactions is a normal bank.

The capital investment company can take the form of a joint-stock company (Aktiengesellschaft AG, Aktiebolag AB) or a private limited company (Gesellschaft mit beschränkter Haftung GmbH, Handelsbolag HB). But according to §2, wherein it is not allowed for joint-stock companies to invest in properties, the investigated forms of capital investment companies are diminished just to private limited companies.

However in the research it was recognised that also joint-stock companies are listed for having real estate funds. This is because those enterprises are usually big companies and build subsidiaries that carry out a special task. For example, Deutsche Bank AG is the joint-stock company and the different kinds of funds are held by the private limited company Deutsche Bank Real Estate GmbH. Through the connection of both types of organisations, it is necessary to explain and examine them equally.

Both structures of institutes belong to corporate enterprises (Kapitalgesellschaften, Kapital Bolag), which means that there is a separation from persons and capital. Further the shareholders are just liable to their invested money. The creditors can just take proceedings against the organisation, not against the shareholders^[17]. In the context of capital investment companies it means that the separate estate is untouchable in case of company’s debt against other institutions.

Another condition for capital investment companies is their start capital. There were in the last years some major changes, according to the standardization of the European law. Since then joint-stock companies needed just 300.000 EUR^[18] and private limited companies 25.000 EUR^[19].

The following information is extracted from the lecture of Betriebswirtschaft (BWL) at the Bauhaus-University. Advantages of private limited companies:

- Limited reliability of the shareholders
- Shares sellable and heritable
- Availability of new capital by new shareholders
- Low start capital
- Individual contract for shareholders, less rules

Disadvantages:

- Difficult accessibility to the capital market
- High insolvency sensibility
- The low start capital is mostly not enough

Advantages of Joint - stock companies:

- Good financial possibilities
- Easy purchasing and selling of shares
- Separation of investors and executive management

Disadvantages:

- Complicated foundation, many regulations
- High foundation costs
- Extensive audit and publicity regulations

In general there is a tendency for smaller companies to form a private limited company, because less money is needed and fewer regulations make it difficult to found the new company.

The following drawing 3.1 summarises the organisation of capital investment companies in Germany:

illustration not visible in this excerpt

Drawing 3.1: Diagram about Investment companies in Germany Source: Compiled by the author

[...]

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^[1] Jones Lang LaSalle (2007)

^[2] NewSec (2007)

^[3] Jones Lang LaSalle (2006)

^[4] Stiglitz (2000)

^[5] OECD (1996)

^[6] Axelsson, Victorin (1999)

^[7] McAllister (1999)

^[8] Milgrom, Roberts (1992)

^[9] Milgrom, Roberts (1992)

^[10] Brealy, Myers, Allen (2006)

^[11] Encyclopedia Britannica (2007)

^[12] Fanning (2005)

^[13] Lind (1998)

^[14] Lind (1998)

^[15] BVI (2007)

^[16] Encyclopedia Britannica (2007)

^[17] Grundlagen der Betriebswirtschaft, lecture Bauhaus-Universität (2003)

^[18] Investmentänderungsgesetz (2007)

^[19] Gesetz für Gesellschaft mit beschränkter Haftung, GmbHG (2007)